OVERSEAS companies that buy British rivals could face fines if they renege on job promises, according to ­Business Secretary Vince Cable.

Pledges to protect jobs and sites should be legally binding with penalties running into millions, he said.

Cable also wants to change the rules to make it easier for ministers to stop overseas takeovers if national interests are under threat. Now they can only stop deals where national security or economic stability is at risk, or where they create media dominance.

He added: “I want to ensure companies can be hit hard if commitments are not honoured.”

I want to ensure companies can be hit hard if commitments are not honoured

Vince Cable

It follows the failed takeover bid by US drug giant Pfizer for AstraZeneca.

Shadow business secretary Chuka Umunna said Cable has finally accepted the demand for a tougher public interest test, which Labour made three months ago.